iteracom

Maybe this response is too simplistic but wouldn't you only be concerned with a capital loss if you were trying to trade or liquidate the bonds? Remember, there are a number of reasons to trade bonds which include mis-pricing / gain opportunities. Plenty of institutions / individuals do not trade bonds and hold them to maturity. At the end of the life, regardless of interest rates, you will still get principal (assuming no default) with coupon payments along the way.